The Honest Company, Inc. (NASDAQ:HNST) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Honest Company has a consensus analyst rating of “Hold” from eight brokerages, with an average 1-year price target of about $3.47.
• The company reported its latest quarterly results in line with expectations, posting $0.01 EPS and $78.1 million in revenue, which topped analyst estimates.
• Honest also announced a $25 million share buyback authorization, while recent insider sales and mixed institutional activity suggest ongoing shifts in investor sentiment.

The Honest Company, Inc. (NASDAQ:HNST - Get Free Report) has been given a consensus rating of "Hold" by the eight brokerages that are presently covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $3.4667.

A number of brokerages have issued reports on HNST. Wall Street Zen upgraded Honest from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Telsey Advisory Group reiterated a "market perform" rating and set a $4.00 price objective on shares of Honest in a research note on Thursday, May 7th. Alliance Global Partners reiterated a "buy" rating on shares of Honest in a research note on Thursday, May 7th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Honest in a research note on Thursday, January 22nd. Finally, Zacks Research upgraded Honest from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 26th.

Insider Buying and Selling at Honest

In other news, insider Dorria L. Ball sold 15,099 shares of the business's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $2.85, for a total value of $43,032.15. Following the completion of the transaction, the insider owned 432,295 shares in the company, valued at $1,232,040.75. The trade was a 3.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Jonathan Mayle sold 12,725 shares of the business's stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $2.85, for a total value of $36,266.25. Following the completion of the transaction, the senior vice president owned 455,391 shares of the company's stock, valued at $1,297,864.35. This represents a 2.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 191,894 shares of company stock valued at $546,898 in the last ninety days. Corporate insiders own 9.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HNST. Mak Capital One LLC purchased a new position in shares of Honest in the fourth quarter worth $9,104,000. Balyasny Asset Management L.P. raised its stake in shares of Honest by 796.2% in the fourth quarter. Balyasny Asset Management L.P. now owns 2,006,646 shares of the company's stock worth $5,177,000 after purchasing an additional 1,782,742 shares during the last quarter. Portolan Capital Management LLC raised its stake in shares of Honest by 11.4% in the third quarter. Portolan Capital Management LLC now owns 6,928,004 shares of the company's stock worth $25,495,000 after purchasing an additional 710,651 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Honest by 70.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,520,331 shares of the company's stock worth $3,922,000 after purchasing an additional 627,537 shares during the last quarter. Finally, UBS Group AG raised its stake in shares of Honest by 77.3% in the fourth quarter. UBS Group AG now owns 1,014,939 shares of the company's stock worth $2,619,000 after purchasing an additional 442,542 shares during the last quarter. Hedge funds and other institutional investors own 45.54% of the company's stock.

Honest Price Performance

NASDAQ HNST opened at $3.12 on Monday. The stock's 50 day moving average is $3.08 and its 200 day moving average is $2.79. The firm has a market capitalization of $343.45 million, a PE ratio of -18.35 and a beta of 2.15. Honest has a twelve month low of $2.07 and a twelve month high of $5.55.

Honest (NASDAQ:HNST - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $0.01 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.01. The business had revenue of $78.10 million during the quarter, compared to analysts' expectations of $76.25 million. Honest had a positive return on equity of 3.52% and a negative net margin of 5.39%. On average, research analysts anticipate that Honest will post 0.1 earnings per share for the current year.

Honest declared that its Board of Directors has initiated a share buyback plan on Friday, February 20th that authorizes the company to buyback $25.00 million in shares. This buyback authorization authorizes the company to reacquire up to 9.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

Honest Company Profile

The Honest Company, Inc NASDAQ: HNST is an American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning. The company emphasizes transparency in ingredient sourcing and product safety, positioning itself in the premium segment of mass-market retail and direct-to-consumer channels.

Honest was founded in 2011 by actress Jessica Alba and environmental health advocate Christopher Gavigan with a mission to offer parents household and baby care items free from harsh chemicals and synthetic fragrances.

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